The U.S – China trade talks have had a strong influence on the global financial markets. As per the recent development, a congressional report on Monday highlighted that intellectual property theft remains to be a matter of gravity for the United States of America, against which a pragmatic strategy is yet to be announced.
Research Grants And Visa Agencies Are Failing to Scrutinize The Chinese Applications
The report further added that the Federal Bureau of Investigation (FBI) should take on the responsibility of educating and keeping the academic institutes informed in hopes of preparing the institutes better to counter the Chinese attempt of stealing the American intellectual property. The report has blamed visa agencies and organizations that offer research grants as they lack a sophisticated system to track the recipients and monitor them through the course of their research in the USA. The Congressional report has also appreciated the universities for being more meticulous in keeping a check on its scientists and identifying the conflicts of interest as well as the foreign funding sources.
According to the report, it is against the national security interest of the USA to spend billions of dollars on research funded by the taxpayers only to support the economic and military development of China. The report blatantly states that due to insufficient scrutiny of applications, Chinese scientists are getting access to the innovative technologies of the USA as well as the work of the US academics. Such information and technology help these incentivized scientists to perform research in the best interest of China.
Incidents of Chinese patents that were primarily based on the research conducted in or by the American academics were also accentuated in the report. It further remarked that applicants from China continue to deceive the authorities by lying on their research grants or concealing the source of foreign funding. Chinese scientists have also been involved in downloading confidential research files before returning to their homeland and using the information to push China closer to global leadership.
Response In The Forex Market
Such complications of the U.S – China trade talks have weighed heavily on the U.S dollar. The Trump administration had previously announced that resolving the matter of intellectual property theft is a priority for the U.S. The congressional report, therefore, hints at the possibility of imminent impediments in signing a broader trade deal with China.
The U.S dollar index has dropped below 98.00 and is currently at 97.73. Major currency pairs such as EUR/USD and GBP/USD are also benefitting as the U.S dollar slips. The former has gained 0.09% for the day and is currently trading at 1.1070 while Cable was last seen aiming for the psychological resistance located at 1.30.